There is an impending “life insurance equality gap”, as non-salaried workers, including freelancers, self-employed people and those on zero-hours contracts or hourly pay, are significantly less likely to have cover than those with salaried jobs (33% vs. 50%), according to research from Beagle Street.
The insurance provider, which is part of the OneFamily Group, surveyed 2,000 people between the ages of 18 and 50 and asked about their working patterns and attitudes towards insurance. It suggested that those with variable incomes are less likely to have the protection they may need.
Of those in non-salaried work without life insurance, the most common reason for not having it is that they can’t afford it, with 25% saying it is beyond their means. Just 19% of salaried workers say they can’t afford it.
However, 64% of non-salaried workers without life insurance say they are concerned about not having cover. This includes being worried their family or friends might not be able to pay for their funeral (16%), their family will inherit financial burdens such as loans and mortgages (14%) and their family won’t have the same quality of life if they passed away (14%).
Ryan Griffin, director of protection at Beagle Street, said, “It’s clear there is a life insurance equality gap between those who have salaried jobs and those who don’t. However, those in non-salaried work may benefit from having cover the most, particularly as they are unlikely to have the same death in service benefits that people in salaried jobs receive from their employer. It’s vital that everyone who could benefit from having life insurance, can access it. Not only this, but there must be affordable and accessible options that work for people and their families.
“We aim to make the process as easy as possible for all our customers at Beagle Street. More than 70% of people are accepted straight away without the need for medical reports and the process can be completed within 10 minutes. Our life insurance policies may also cost less than people think, with prices starting at £6 a month. This is the cost of two coffees, but can provide a financial safety net to a family if a wage earner passed away. We don’t ask customers about what they do day-to-day and their occupation won’t affect their premiums unless it is exceptionally high risk.
“We’d all hope that we and our loved ones won’t need life cover, but unfortunately, we never know what might happen. It is much better to have it and not need it, than to need it and not have it. Advisers play a key role in helping people find the protection that suits their needs and we value the support they give to those looking for cover that is right for them.”